Alphabet, Google’s parent company, has given other Bets companies more autonomy, allowing them to design their own work structures and pay levels, according to an internal memo, according to reports. Alphabet notified some of its subsidiaries, such as self-driving unit Waymo and healthcare unit Verly, in September that they would no longer mimic Google’s work structure, the memo shows.
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In addition, Alphabet ended its practice of “giving Google (i.e. search) employees more equity and career mobility.” Taken together, these moves by Alphabet put “other subsidiaries” on a more equal footing with Google, giving them greater independence as they “pursue a long-term strategy to prove themselves as a viable business.”
Until then, other Alphabet subsidiaries have been imitating Google in the way they create work structures and tie compensation to roles. The above changes have given these so-called “moonshot projects” more autonomy in the development process and can help them better attract external talent.
At the same time, the memo said it would also allow Google to change its own work structure without affecting other subsidiaries.
An Alphabet spokesperson confirmed this, adding that the new system will also benefit recently launched, smaller subdivisions such as Intrinsic and Isomorphic Labs, These labs have different needs than other “moonshots.”
The change comes at a time when some of Alphabet’s subsidiaries are maturing and considering alternatives to their parent company, such as partnerships. Meanwhile, investors are also waiting for units like Waymo and Verly to make real progress toward becoming profitable businesses.